Oregon PERS Director Resigns

Voytko was put off by the much more hands on approach of
the new five-person board appointed by Governor Ted
Kulongoski in September.
While Voytko’s resignation is effective immediately, he
agreed to stay on as a consultant for four months to help
the
Public Employees Retirement System (PERS) through the
transition, according to a Salem (Oregon) Statesman Journal
story.

“It is clear there are differences between us regarding
management initiatives and the strategic direction they
support,” Voytko wrote in a letter to the PERS board.
He went on to say his next move is likely a position in the
private sector.

Prior to signing on with PERS in March 2000, Voytko was
a Wall Street Investment officer and immediately made an
impact for celebrated financial and policy matters.
However, coming in at the top of stock market bubble meant
a long ride down for Voytko and the rest of the PERS staff
as the fund ended up with a $16-billion long-term shortfall
by
the time the 2003 legislature term began.

During the session a trio of changes were approved
that
halved the shortfall but drove pension benefits lower for
tens of thousands of public employees and recent retirees.
The new plan – expected to save Oregon taxpayers
$103 million in pension costs between 2005 and 2007 and $7
billion over 30 years – provides guaranteed monthly
pensions for newly hired public servants (See
Oregon Lawmakers OK Reformed Public Pension
Plan
).

Workers, however, will not get guarantees that their
pension accounts will grow each year or be matched by
employers at retirement. The regular retirement age is
boosted to 65, five years older than in a 1995 reform.
Employees can retire earlier if they work 30 years in the
public sector or are in police and firefighting
jobs.After 30 years, workers will get guaranteed pensions
equal to 45% of their top salary. That will be supplemented
with whatever their individual investment accounts produce.
Combined with Social Security, workers can retire on
incomes close to their salary while working.